Says "Connected," But I Can't Connect.

Today I purchased an Airport Express base station. I followed all the directions, plugged it into my working cable internet and then the wall, followed the directions in the setup assistant, fine and dandy. My iBook displays my airport status in the menu bar, and it says I have an excellent connection.
However, I can't access iChat or any websites. It's as though I'm not connected to the internet at all.
My Express's light is flashing amber. In the manual it states that this means I don't have an internet connection. It's connected directly to my Comcast Cable modem, the same plug which, when I plug it into my iBook's ethernet port, works fine.
I've gone through every troubleshooting thing I can think of. In my network settings it will alternate between saying I'm connected to the wireless router but not the internet, and saying I'm connected to the wireless router AND the internet. All the while, it's still flashing amber...no green light.
HELP...did I just waste $130?
Airport Express & iBook G4   Mac OS X (10.4.6)  

Hi danacordelia717:
Welcome to Apple Discussions!
Under the "Internet" tab, is it configured to "Connect using ethernet" and "Configure tcp/ip" using "DHCP".
Lastly, powerdown everything then start it up in this order:
Cable modem (Wait a min or two), airport (wait a minute or two) then your mac.
Lastly, did you set up your AE to "Create a wireless network, and is "Distribute IP address checked under the "Network" tab.

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